Business in China
Would US companies be better suited trying to "go it alone" in China or to partner with a company that will provide tangible assets and other services for the US-based MNC? What stumbling blocks might exist when partnering with a company in China?
After reading the article I believe that a US company will partner up with a company that will provide them with tangible assets and other services. As the fastest-growing major economy in the world, China continues to offer global companies attractive investment and business opportunities. However, doing business in China also means navigating the complexities that arise from China’s unique historical, political, and cultural contexts (Burkitt, 2012). Establishing a company in China can be a trying and tedious task requiring elaborate approval and registration procedures. Despite the challenges, leading US companies are succeeding in China by developing collaborative relationships with Chinese stakeholders and demonstrating the agility to continuously adapt their strategies to the country’s dynamic environment. Applying for approvals from various authorities is common in China. Navigating China's complex business and regulatory environment to submit the applications to the right channels is an extremely tedious process that the enlightened businessman would rather leave to a partner in China. These companies are positioning themselves for long-term success by embracing the Chinese proverb qiu tong cun yi, which means “seeking similarities while respecting differences.” In doing so, they are co-opting China’s long-term interest in stability and prosperity into their business strategies, China investment regulations and compliance issues (Chu, nd).
China is doing business more and more the American way, but non-Chinese executives still must work hard at building trust in relationships with their Chinese business partners. Chinese business strategy has changed a lot, and they adopt western practices (Chau, 2012).
After reading the article I believe that a US company will partner up with a company that will provide them with tangible assets and other services. As the fastest-growing major economy in the world, China continues to offer global companies attractive investment and business opportunities. However, doing business in China also means navigating the complexities that arise from China’s unique historical, political, and cultural contexts (Burkitt, 2012). Establishing a company in China can be a trying and tedious task requiring elaborate approval and registration procedures. Despite the challenges, leading US companies are succeeding in China by developing collaborative relationships with Chinese stakeholders and demonstrating the agility to continuously adapt their strategies to the country’s dynamic environment. Applying for approvals from various authorities is common in China. Navigating China's complex business and regulatory environment to submit the applications to the right channels is an extremely tedious process that the enlightened businessman would rather leave to a partner in China. These companies are positioning themselves for long-term success by embracing the Chinese proverb qiu tong cun yi, which means “seeking similarities while respecting differences.” In doing so, they are co-opting China’s long-term interest in stability and prosperity into their business strategies, China investment regulations and compliance issues (Chu, nd).
China is doing business more and more the American way, but non-Chinese executives still must work hard at building trust in relationships with their Chinese business partners. Chinese business strategy has changed a lot, and they adopt western practices (Chau, 2012).